Shipments of devices enabled with eSIM are increasing rapidly, signaling a shift in both consumer and industrial sectors. With millions of new devices expected to hit the global market, technology companies are adapting quickly to accommodate the growing reliance on digital connectivity. Industry data forecasts further growth as emerging markets and manufacturers prioritize eSIM integration, while infrastructure providers aim to keep pace with usage trends. As smartphones and IoT solutions adopt this technology, brands are strategically positioning themselves to capitalize on the trend. Different regions face unique challenges and opportunities as operators and vendors navigate evolving regulations and user adoption rates.
Earlier industry reports estimated steady, yet moderate, progress for eSIM uptake, primarily due to regulatory delays and slow manufacturer adoption. However, current projections show a marked increase in consumer and IoT device shipments, reflecting recent moves from leading brands and operators. This acceleration contrasts with earlier expectations, where China’s adoption and a broader acceptance of eSIM-only devices remained limited. Now, regions previously trailing in implementation, such as Asia-Pacific, are positioned for stronger growth as regulatory barriers lessen. Western markets, having led initial deployments, are seeing more gradual expansion as focus shifts to full-scale adoption and infrastructure readiness.
What Drives the Surge in eSIM-Enabled Device Shipments?
Device shipments incorporating eSIM technology are forecasted to surpass 633 million units by 2026, according to the latest estimates from ABI Research. Smartphones continue to dominate this segment, expected to account for up to three-quarters of all eSIM-enabled device sales in the coming years. The resurgence in overall smartphone demand, coupled with rising integration of eSIM by manufacturers, underpins this solid growth.
How Will Regional Dynamics Shape Market Growth?
The Asia-Pacific region is expected to experience the fastest growth rate in eSIM-enabled smartphones, driven especially by China’s planned approval for domestic eSIM usage. Following the introduction of a pilot program by China Unicom, Chinese consumers will soon have greater access to eSIM services, unlocking significant new market potential. By contrast, North America and Western Europe—where eSIM adoption started earlier—are settling into consistent, steadier expansion as more operators enable customer support and device activation via eSIM.
What Strategies Are Vendors and Operators Employing?
Companies adopting eSIM-only models, such as Apple with its latest iPhones in the United States, prompt service providers to upgrade infrastructure and ramp up support. These adjustments help streamline deployment, bridging the gap between device availability and widespread customer participation. An ABI Research spokesperson commented:
“Delays to SGP.32 ratification have inhibited expected new IoT deployments, but with over 70% of smartphones still lacking eSIM support, the continued march towards full market penetration leaves smartphones standing as the largest eSIM growth area by volume through 2030.”
For companies targeting niche application areas, particularly in IoT, expectations are that innovation and tailored service offerings will capture emergent opportunities as SGP.32 standard deployments are realized.
Operators and vendors continue to diversify their offerings as the eSIM ecosystem matures. Subscription downloads are forecast to exceed a billion by 2029, elevating requirements for robust infrastructure and seamless user experiences. ABI Research further noted,
“The continued dominance of smartphones, which constituted 66% of total eSIM-enabled device shipments in 2024 and 74% in 2025, explains the mitigated overall impact of a challenged IoT market.”
With China’s regulatory changes, new IoT deployments, and device manufacturers embracing eSIM-first strategies, sustained growth appears likely for the foreseeable future.
eSIM technology offers operational efficiencies and simplifies the process of device management for both consumers and organizations. For consumers, switching between carriers or subscribing to new services can now be accomplished digitally, sidestepping physical SIM cards. Enterprises and service vendors should prepare for increased demand by investing in scalable, secure platforms to support eSIM deployments. Decisions about regional expansion, regulatory compliance, and infrastructure readiness will be critical for firms intending to participate in this expanding market. Companies entering the eSIM sector should monitor evolving regional policies and consumer trends to optimize their strategies and maintain competitive advantage as adoption accelerates.
